Question 1

Past actions unbargained for by the parties in an agreement can become valid consideration for a contract.

Accepted Answer

A) True 
 B)False

Question 2

Under the common law, in order to be enforceable, a modification of an existing contract must be supported by mutual consideration.

Accepted Answer

A) True 
 B)False

Question 3

Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you." This is an example of:

Accepted Answer

A)  an illusory promise.
B)  past consideration.
C)  the pre-existing duty rule.
D)  good consideration.E) A) and C)
F) C) and D)

Question 4

Jan promises Eli $4,000 for one of his original paintings on the condition that she receives $1 million from her mother's will.In this case:

Accepted Answer

A)  Jan has made an illusory promise.
B)  Jan's promise is legally sufficient unless Jan knows she cannot inherit the $1 million.
C)  Jan has made a conditional promise which is not sufficient to form consideration.
D)  Jan's promise is legally inadequate and the courts will therefore not enforce it.E) All of the above
F) A) and D)

Question 5

In most, if not all, cases where there is a legal detriment to the promisee, there is also a legal benefit to the promisor.

Accepted Answer

A) True 
 B)False

Question 6

An output contract is a special form of an illusory contract.

Accepted Answer

A) True 
 B)False

Question 7

Legal detriment means the obtaining by the promisor of that which he had no prior legal right to obtain.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following will often not constitute valid consideration?

Accepted Answer

A)  Forbearance to do an act.
B)  Performance of services.
C)  A promise to perform.
D)  An illusory promise.E) C) and D)
F) B) and D)

Question 9

Which of the following statements best describes charitable subscription promises?

Accepted Answer

A)  They are generally not enforceable.
B)  They are equated with gifts.
C)  They are generally enforceable if there is reliance or a probability of reliance by the charity.
D)  Courts generally find that it would be unjust to enforce them because persons who promise charitable subscriptions do not expect to be held accountable for them.E) B) and C)
F) A) and B) C

Question 10

Which of the following would not be enforceable without additional consideration?

Accepted Answer

A)  A promise to pay a debt barred by the statute of limitations.
B)  A promise to pay a debt discharged in bankruptcy where the promise meets the requirements of the Bankruptcy Code.
C)  A promise which falls within the doctrine of promissory estoppel.
D)  The settlement of an undisputed debt.E) A) and B)
F) None of the above

Question 11

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Accepted Answer

A) True 
 B)False

Question 12

Define a substituted contract and explain how it affects an agreement.

Accepted Answer

A substituted contract results when the ...

Question 13

An exclusive dealing contract is one type of contract which is illusory, because it lacks consideration.

Accepted Answer

A) True 
 B)False

Question 14

The Uniform Commercial Code follows the common law rule that requires a modification of an existing contract to be supported by consideration in order to be valid.

Accepted Answer

A) True 
 B)False

Question 15

An undisputed debt is:

Accepted Answer

A)  a contested amount of debt.
B)  an obligation that is not contested as to existence but is contested as to the exact amount of the debt.
C)  an obligation that is not contested as to its existence or amount.
D)  a debt action that the court will not hear because it is not definite and certain.E) A) and B)
F) B) and D) C

Question 16

Legal sufficiency of consideration and adequacy of consideration are virtually synonymous terms.

Accepted Answer

A) True 
 B)False

Question 17

An illusory promise is consideration for a return promise.

Accepted Answer

A) True 
 B)False

Question 18

Charitable subscriptions are one of the most frequently occurring applications of the doctrine of promissory estoppel.

Accepted Answer

A) True 
 B)False

Question 19

Is a promise to pay a pre-existing moral obligation enforceable? Explain.

Accepted Answer

a.Under the common law, a modification of an existing contract must be supported by mutual consideration to be enforceable.The UCC states that the modification of an existing contract for the sale of goods is enforceable without consideration provided both parties intend to modify the contract and they act in good faith.b.An output contract is an agreement of a seller to sell its entire production to a particular buyer.A requirements contract is an agreement to purchase from a particular seller all the materials of a particular kind that the purchaser needs.These contracts are not illusory.Illusory promises are words of promise that make performance entirely optional with the purported promisor.

Question 20

Gratuitous promises are generally legally enforceable.

Accepted Answer

A) True 
 B)False

Exam 12: Consideration

Past actions unbargained for by the parties in an agreement can become valid consideration for a contract.

Correct Answer
verified

Under the common law, in order to be enforceable, a modification of an existing contract must be supported by mutual consideration.

Correct Answer
verified

Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you." This is an example of:

Correct Answer
verified

Jan promises Eli $4,000 for one of his original paintings on the condition that she receives $1 million from her mother's will.In this case:

Correct Answer
verified

In most, if not all, cases where there is a legal detriment to the promisee, there is also a legal benefit to the promisor.

Correct Answer
verified

An output contract is a special form of an illusory contract.

Correct Answer
verified

Legal detriment means the obtaining by the promisor of that which he had no prior legal right to obtain.

Correct Answer
verified

Which of the following will often not constitute valid consideration?

Correct Answer
verified

Which of the following statements best describes charitable subscription promises?

Correct Answer
verified
C

Which of the following would not be enforceable without additional consideration?

Correct Answer
verified

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Correct Answer
verified

Define a substituted contract and explain how it affects an agreement.

Correct Answer
verified
A substituted contract results when the ...
View Answer

An exclusive dealing contract is one type of contract which is illusory, because it lacks consideration.

Correct Answer
verified

The Uniform Commercial Code follows the common law rule that requires a modification of an existing contract to be supported by consideration in order to be valid.

Correct Answer
verified

An undisputed debt is:

Correct Answer
verified
C

Legal sufficiency of consideration and adequacy of consideration are virtually synonymous terms.

Correct Answer
verified

An illusory promise is consideration for a return promise.

Correct Answer
verified

Charitable subscriptions are one of the most frequently occurring applications of the doctrine of promissory estoppel.

Correct Answer
verified

Is a promise to pay a pre-existing moral obligation enforceable? Explain.

Gratuitous promises are generally legally enforceable.

Correct Answer
verified

Exam 12: Consideration

Past actions unbargained for by the parties in an agreement can become valid consideration for a contract.

Correct AnswerverifiedShow Answer

Under the common law, in order to be enforceable, a modification of an existing contract must be supported by mutual consideration.

Correct AnswerverifiedShow Answer

Alice says to Brian, "If I decide to buy a word processor next year, I will buy it from you." This is an example of:

Correct AnswerverifiedShow Answer

Jan promises Eli $4,000 for one of his original paintings on the condition that she receives $1 million from her mother's will.In this case:

Correct AnswerverifiedShow Answer

In most, if not all, cases where there is a legal detriment to the promisee, there is also a legal benefit to the promisor.

Correct AnswerverifiedShow Answer

An output contract is a special form of an illusory contract.

Correct AnswerverifiedShow Answer

Legal detriment means the obtaining by the promisor of that which he had no prior legal right to obtain.

Correct AnswerverifiedShow Answer

Which of the following will often not constitute valid consideration?

Correct AnswerverifiedShow Answer

Which of the following statements best describes charitable subscription promises?

Correct AnswerverifiedC

Which of the following would not be enforceable without additional consideration?

Correct AnswerverifiedShow Answer

The term "past consideration" is not really consideration at all because the law will not find a contract where there is no bargained-for-exchange.

Correct AnswerverifiedShow Answer

Define a substituted contract and explain how it affects an agreement.

Correct AnswerverifiedA substituted contract results when the ...View AnswerShow Answer

An exclusive dealing contract is one type of contract which is illusory, because it lacks consideration.

Correct AnswerverifiedShow Answer

The Uniform Commercial Code follows the common law rule that requires a modification of an existing contract to be supported by consideration in order to be valid.

Correct AnswerverifiedShow Answer

An undisputed debt is:

Correct AnswerverifiedC

Legal sufficiency of consideration and adequacy of consideration are virtually synonymous terms.

Correct AnswerverifiedShow Answer

An illusory promise is consideration for a return promise.

Correct AnswerverifiedShow Answer

Charitable subscriptions are one of the most frequently occurring applications of the doctrine of promissory estoppel.

Correct AnswerverifiedShow Answer

Is a promise to pay a pre-existing moral obligation enforceable? Explain.

Gratuitous promises are generally legally enforceable.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A substituted contract results when the ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
C

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified